Scholarships ahead for nonprofits
New federal program could benefit local students
Newcastle-area students could qualify for scholarships covering tutoring, instructional materials and other educational expenses under a new federal program Wyoming is preparing to implement in 2027.
The Wyoming Department of Education announced in a press release on Oct. 12 that it is accepting applications from nonprofit organizations seeking approval to distribute scholarships funded through the new federal K-12 Education Tax Credit Program, which President Donald Trump established through the Working Families Tax Cuts Act.
Asked whether students attending Weston County School District No. 1 could qualify for scholarships, WDE Chief of Staff Dicky Shanor told the News Letter Journal that eligibility would depend on family income and the organizations distributing the money.
“Theoretically, yes, as long as the student meets the income requirements,” Shanor said. “The SGOs will decide how to utilize their scholarship funds.”
Federal law limits program scholarships to students whose household income does not exceed 300% of
the area’s median gross income for the preceding calendar year. Proposed Internal Revenue Service regulations, which were published Oct. 2, outline how that threshold would be adjusted for household size and how eligibility would be verified.
According to an Oct. 1 press release from the IRS, qualifying expenses may include tutoring, special-needs services, books, supplies and computers. Proposed federal regulations would prohibit participating states from restricting scholarship eligibility based on the type of school students attend.
Beginning on Jan. 1, taxpayers may receive a nonrefundable federal income tax credit of up to $1,700 annually for qualify-ing contributions to approved scholarship granting organizations, or SGOs. Married couples filing jointly could receive up to $3,400.
The organizations will distribute contributions to eligible K-12 students.
Shanor told the NLJ that he had not heard from or collaborated with anyone in Weston County about the program.
Nonprofits seeking approval must meet federal and state requirements, including requirements related to financial management and reporting, according to the department’s release. To be eligible for consideration for the 2027 tax year, they must apply by Dec. 1. The department will review applications and recommend organizations to the governor’s office for final approval. The state plans to publish its list of approved organizations beginning in January.
“Every child in Wyoming deserves access to an education that best fits their unique needs and helps them reach their full potential,” State Superintendent of Public Instruction Megan Degenfelder said in the release. “By opening applications for Scholarship Granting Organizations under this federal program, we are taking another important step toward empowering parents and expanding educational opportunities across our state.”